18th Jul 2025 08:45
(Alliance News) - Valterra Platinum Ltd on Friday said interim earnings will be hit by lower sales volumes, together with the costs of its demerger from parent Anglo American PLC.
The Rosebank, Johannesburg-based company, formerly called Anglo American Platinum Ltd, was spun off from Anglo American in May. It listed late in May in Johannesburg and early in June in London.
For the first six months of 2025, the platinum producer expects basic earnings per share to plunge to between 49 rand cents and 343 cents, from 2,402 cents a year earlier.
At the headline level, EPS is likely to range between 305 cents and 590 cents, down from 2,456 cents.
The group said the sharply lower earnings are primarily due to a decline in platinum group metal sales volumes, as well as ZAR1.4 billion in one-off demerger costs.
Basic EPS was further hurt by a ZAR900 million assets scrapping, mainly relating to the design and engineering work for the SO2 abatement plant at Mortimer Smelter, following the decision to place Mortimer Smelter on care and maintenance.
But the decline in earnings was partially offset by cost savings of ZAR2.1 billion, Valterra said.
For the first half, total PGM production, including contribution from third parties and joint operation Modikwa, declined 9.5% to 1.46 million ounces from 1.62 million ounces a year before.
Total production for the second quarter alone was 769,000 ounces, down 9.2% from 847,200 ounces a year earlier but up 10% from 696,300 ounces in the first quarter.
From own mines, production for the first half declined 12% to 926,100 ounces from 1.05 million ounces a year before. For the second quarter, production from own mines fell 15% to 464,100 ounces from 547,200 ounces a year before but was up 0.5% from 462,000 ounces in the first quarter.
Total refined PGM production for the first half of 2025 was up 14% to 1.79 million ounces from 2.07 million ounces. Refined output for the second quarter declined 11% to 1.15 million ounces on-year from 1.29 million ounces. On-quarter, refined production slumped 78% from 645,300 ounces.
Trading PGM sales volume for the first half was 9.1% higher at 3.59 million ounces from 3.29 million ounces a year before. For the second quarter alone, trading PGM sales volume dropped 49% to 1.06 million ounces from 2.09 million ounces a year before and 58% from 2.53 million in the first quarter.
The decline in sales volumes reflected lower refined production as a consequence of lower production due to significant rainfall and flooding in February that disrupted operations at Tumela mine at Amandelbult, the drawdown of excess work-in-progress in the prior period and the three yearly stock count at the Precious Metals Refinery.
"The repair and recovery work at Amandelbult has progressed well and in line with our expectations. Dishaba Mine and Tumela Upper restarted in April and Tumela lower was successfully recommissioned in June 2025 and remains on track to be at steady-state in the third quarter," Valterra said.
Valterra said it remains on track to deliver annual production within guidance. Full-year refined production guidance is between 3.0 million ounces and 3.4 million ounces.
Shares in Valterra were up 3.8% to ZAR869.25 on Friday morning in Johannesburg and up 4.5% to 3,635.00 pence in London.
By Artwell Dlamini, Alliance News senior reporter South Africa
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